ship) are often socially beneficial. In these circumstances, the policy of controlling the contract price is preferable, as …

According to the contract law principle established in the famous nineteenth century English case of Hadley v …. Baxendale, and followed ever since in the common law world, liability for a breach of contract is limited to losses "arising …, at the time they made the contract, ..." Using a formal model, we attempt in this paper to analyze systematically the …